1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ivolga24 [154]
3 years ago
15

Pensacola Inc exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance

Old equipment caseBook Value Fair Value ReceiveEquipment A $73,900 $80,100 $12,400Equipment B $60,300 $55,000 $10,200For Equipment A, Pensacola would record the new equipment ata. $69,200b. $67,700c. $55,200d. $ 71,950
Business
1 answer:
vredina [299]3 years ago
4 0

Answer:

The correct option is <u>b. $67,700</u>.

Explanation:

Note: The data in the question are merged. They are therefore sorted before answering the question. See the attached pdf file for the question and the sorted data.

In accounting, when an old equipment is exchanged for a new equipment in a transaction that has commercial substance, the new equipment will be recorded at the fair value less any cash received.

Therefore, the amount at which Pensacola would record the new equipment A can be determined as follows:

<u>Particulars                                                $     </u>

Fair value of Equipment A                 80,100

Cash received                                  <u> (12,400) </u>

Amount to record equipment A    <u>  67,700  </u>

Therefore, Pensacola would record the new equipment for Equipment A at $67,700. And, the correct option is <u>b. $67,700</u>.

Download pdf
You might be interested in
How does a local water budget differ from the water budget of the whole earth?
Brrunno [24]
The way that a local water budget differs from the water budget of the whole Earth is that t<span>he local water budget is not balanced and the whole Earth is balanced.
Some societies in their local communities have more water than others, meaning that at the local level, these budgets are not equal, because some budgets are higher than the other ones. However, if you take a look at the budget for the whole planet, you will see that it is pretty balanced.
</span>
6 0
3 years ago
John Jansen, an employee of Redwood Company, had gross earnings for the month of May of $4,000. FICA taxes are 7.65% of gross ea
Anastasy [175]

Answer:

The net pay for John Jansen is $2894

Explanation:

For calculating the net pay for John Jansen we have to subtract all the FICA taxes and federal income taxes and also state income taxes, with authorized voluntary deductions also being subtracted from the gross earnings .

Given information -          Gross earning                         = $4000

                                         FICA taxes                                = 7.65%

                                         Federal income taxes               = $675

                                         State income taxes                    = 3%

                                       Authorized voluntary deductions = $5

One important to remember here is that FICA taxes and State taxes would be calculated on the gross earnings of John

FICA taxes = 7.65% of $4000

                  = .0765 x $4000

                  = $306

State taxes = 3% of $4000

                   = .03 x $4000

                   = $120

NET PAY = gross earnings - FICA tax - state tax - federal income tax -

                                                         authorized voluntary deduction

   = $4000 - $306 - $120 - $675 - $5

   = $2894

 

7 0
3 years ago
Karina looked at her paycheck stub. Her gross pay was $245 and her net pay was $200. How much did she have in deductions?
sammy [17]
How much did she have in deductions? $45
7 0
3 years ago
Read 2 more answers
Based in topic study materials, discuss how servant leadership contributes to competitive advantage in contemporary organization
Digiron [165]

Answer:

A servant leadership takes some additional season of theirs to engage the association’s culture that will cause the representatives to have great morals and in this way offer great administrations. It will be useful to the workers as they would have the option to deliver more in light of the fact that there will be a culture to concentrate in this manner would improve the gainfulness of the association, and in the long run improving the upper hand of the organization.  

A servant leadership demonstrates regard to representatives and by along these lines the workers get roused to give the association a decent notoriety helping it to increase serious. For example, in a client care association, the chief should demonstrate regard to the representative indicating hireling authority by giving the understanding the worker.  

Servant leadership pioneers consistently put their kin in any case. Treating the workers with genuineness, uprightness, and care and urging them an opportunity to time. For example, in a client relations association, the supervisor is required to give its representatives the right data about the association with the goal that they can advance the right data to the customers so as to improve the upper hand.  

A servant leadership has a solid conviction that accomplishment of an association can be accomplished by the commitment of each individual in the association. Consequently, the worker head will make solid groups that will collaborate and in the long run would make the business remarkable those different contenders

5 0
3 years ago
The Sugar Sweet Company will choose from two companies to transport its sugar to market. The first company charges
Harlamova29_29 [7]

Answer:

Both will charge $6,904 when they transport 16 tons of sugar.

Explanation:

The amount of sugar to be transported is S, since we need to calculate at which amount of sugar both truck companies charge the same total price, we need to solve the following:

first company charges $4,500 + $150.25 S

second company charges $3,696 + $200.50 S

since both companies will charge the same total amount, then

$4,500 + $150.25 S = $3,696 + $200.50 S

$4,500 - $3,696 = $200.50 S - $150.25 S

$804 = $50.25 S

$804 / $50.25 = S

S = 16

$4,500 + ($150.25 x 16) = $4,500 + $2,404 = $6,904

5 0
3 years ago
Other questions:
  • Which one of the following methods of analysis is most appropriate to use when two investments are mutually exclusive?Internal r
    14·1 answer
  • Cheyenne is the manager of a local small hotel. just today cheyenne received word that a major convention will be coming to town
    13·1 answer
  • When a firm does not have the resource required for pursuing a growth strategy, and if the resource in question is not easily tr
    12·1 answer
  • Vicki is an independent insurance agent who has seen little increase in her revenues over the last two years. Her main marketing
    10·1 answer
  • O’Hara Associates sells golf clubs, and with each sale of a full set of clubs provides complementary club-fitting services. A fu
    11·1 answer
  • A company acquires a rather large investment in another corporation. What criteria determine whether the investor should apply t
    9·1 answer
  • Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in
    9·1 answer
  • The compensation associated with executive stock option plans is:A. The book value of a share of the company's shares times the
    9·1 answer
  • To write a check or make A with drawl when there isn’t enough money in account to pay for?
    5·1 answer
  • Which of the following is an example of internal compliance?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!